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Brand vs. OriginWhat future for small
Italian wineries?Presented by Reka Haros
For MIB School of ManagementDecember 2015
Who I am I am a seasoned marketer and wine business developer with a solid background in brand management and communications thanks to my prior career in FMCG and Advertising industries. I am managing partner at Sfriso Winery in Italy and a marketing and business development consultant for both in and outside the wine industry.
@RekaHaros
A quick look at the Global Market
@RekaHaros
Global production in billions of liters
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 20140.00
5,000.00
10,000.00
15,000.00
20,000.00
25,000.00
30,000.00
23,851.1023,994.5024,296.4024,742.2024,827.1025,224.1025,537.9026,128.1026,379.3026,679.9027,263.2027,814.2027,969.0027,857.7027,873.80
WorldWestern EuropeAsia PacificNorth America
Fonte: Euromonitor 2015
@RekaHaros
1) Global production +10%
2) European production -10%
3) Asia and North America +50%
But in the past 4 years, production has been stable!
Trend over the past 14 years
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Global per capita consumption
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 20140
5000
10000
15000
20000
25000
30000
35000
40000
Western Europe North America World Asia Pacific
Fonte: Euromonitor 2015
@RekaHaros
Trend in the past 14 years -17% in Europe
+37% North America
+ 55,5% in Asia
-1,8% globally
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New consumers are coming from new markets
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Italy’s global market
position: Sempre fra I primi produttori
Among the first in volume production
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Third consumer in the world with 8.26% of
the total volumeUSA
France Ita
ly
German
yChin
a UKSp
ain
Argenti
naRuss
ia
Austral
ia
Rest of
Worl
d0
5
10
15
20
25
30
35
8.26%
% World Consumption
% World Consumption
Fonte: http://www.wineinstitute.org/files/World_Wine_Consumption_by_Country_Revised_Nov_2015
.pdf@RekaHaros
Italy’s global market
position:
Italy ranks 13th with 33.3 liters per capita consumption
NB: Although US ranks 1st for consumed volumes, it consumes only
10.25 liters per capita
Fonte: http://www.wineinstitute.org/files/World_Per_Capita_Wine_Consumption_Revised_Nov_2
015.pdf @RekaHaros
Italy’s global market
position:
The question is:How can small producers
compete?
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Focusing on consumers
Understanding their needs and their emotional world
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Brand vs. Origin?One does not exclude the other
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Just understand where your
consumers areItaly or Abroad?
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What do foreign consumers think about “country of origin”?
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The value of “Made
In Italy” by county of
origin according to foreign consumers
Fonte: “Made In” the value of Country of Origin for future brands by FutureBrand @RekaHaros
The "Made in Italy" is important in brand communications! It offers companies the opportunity to create competitive advantage and differentiation
It guides consumer purchasing decisions
The "Made in Italy" ranks second most valuable in the category of Food & Beverage
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But be careful not to create too much confusion@RekaHaros
Italian denominations are confusing
More than 300 DOC
More than 70 DOCG
Imagine if all wineries talk about their origins!
@RekaHaros
Effective communication of
"Made In Italy"Should not be done through the registered designations of origin but through four key areas:1. Authenticity: The production of
unique products and services has to be related to the history, people and geographical situations of the country.
2. Differentiation: proving a different cultural approach from competitors.
3. Quality Standards: showing commitment to safety, craftsmanship, excellence and production transparency.
4. Competence: to be identified as the 'best' in a category or have created or defined a category.
Fonte: “Made In” the value of Country of Origin for future brands by FutureBrand @RekaHaros
The combination of these four areas becomes a powerful
engine for the differentiation and the authenticity of a
brand.@RekaHaros
The more a brand is associated with a country of origin that has
1) unique products, 2) diffirentiated message, 3) an authentic experience
4) high standards of quality in its own category,
the more likely a consumer considers it.Fonte: “Made In” the value of Country of Origin for future brands by FutureBrand
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So, the 'Made in Italy' in our industry is especially important if our consumers are abroad!
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And in Italy? How can a brand benefit from its origin?
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P A T R I O T I S MDone locally
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Because the #1 brand in Italy is Tavernello!
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The real market is…
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This!Foto by Reka Haros
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The real competition is at this level
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Foto by Reka Haros
In 2014 the top 20 wine companies were
1. CANTINE RIUNITE & CIV 2. CAVIRO 3. GRUPPO CAMPARI 4. PALAZZO ANTINORI 5. MEZZACORONA 6. FRATELLI MARTINI SECONDO LUIGI 7. CASA VINICOLA ZONIN 8. CAVIT CANTINA VITICOLTORI 9. CASA VINICOLA BOTTER CARLO & C. 10. ENOITALIA
11. GRUPPO SANTA MARGHERITA 12. GRUPPO CEVICO 13. CANTINA SOCIALE COOPERATIVA DI SOAVE 14. GIORDANO VINI 15. LA VIS 16. COMPAGNIA DE' FRESCOBALDI 17. CONTRI SPUMANTI 18. SCHENK ITALIA 19. RUFFINO 20. COLLIS VENETO WINE GROUP
Fonte: http://www.mbres.it/sites/default/files/resources/download_en/Summary_wine_2015.pdf@RekaHaros
With a turnover ~ € 3 billion
Fonte: http://www.mbres.it/sites/default/files/resources/download_en/Summary_wine_2015.pdf @RekaHaros
Small businesses can not and should not compete
with the giants in the same battle field!
Foto: www.leadernetworks.com
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They need to do what the giants DO NOT do!Which is exclusive local storytelling!
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B R A N D I NGA viable option for the success of small producers
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Purposeful Branding
Is what adds value and differentiates
@RekaHaros
A purposeful comedian does not think about how he can be
funny, but tries to understand why
people laugh.
Foto: www.flickr.com/photos/cayusa/ @RekaHaros
A purposeful shoe designer does not just consider what will look good on you, but how it
will make you feel wearing it.
Foto: www.flickr.com/photos/_sk/ @RekaHaros
A purposeful architect does
not just take into account the
orientation of the building, he/she
is also concerned about how people
feel inside.
Foto: www.zingarate.com @RekaHaros
A purposeful winemaker should
not only make good wines, but should
think about how its wines will make
people feel when and where they drink it.
Foto by Reka Haros @RekaHaros
The purpose of a producer
must not only be to sell wine, but to attract
and retain consumers.
Foto by Reka Haros
@RekaHaros
A small winery can compete if:1. It puts the consumer at the center of its business strategy2. Creates a strong purposeful brand to differentiate itself3. Can clearly define its own market4. Maintains a flexible and innovative mindset, keeping pace with
the changing needs of consumers5. Doesn’t do what the giants do6. Has the courage to be different
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